Amer Sports Reports Second Quarter 2025 Financial Results, Raises Full Year Revenue, Margin, & EPS Guidance

CEO James Zheng commented, "Amer Sports' strong momentum continued in the second quarter, as our unique portfolio of premium technical brands continues to create white space and take share in sports and outdoor markets around the world.

"We remain confident in our ability to manage through higher tariffs and other near-term macro uncertainties, while also ensuring that we develop each of our unique brands for high quality, long duration growth. The recent Salomon footwear acceleration, Arc'teryx's continued momentum, and steady results from our equipment franchises position us well for another strong performance in 2025 and beyond."

SECOND QUARTER 2025 RESULTS

For the second quarter of 2025, compared to the second quarter of 2024:

• Revenue increased 23% to $1,236 million, or 22% on a constant currency basis ¹. Revenues by segment:Gross margin increased 270 basis points to 58.5%; Adjusted gross margin increased 250 basis points to 58.7%.
  • Technical Apparel increased 23% to $509 million, or increased 23% on a constant currency basis. This reflects an omni-comp ² growth of 15%.
  • Outdoor Performance increased 35% to $414 million, or increased 32% on a constant currency basis.
  • Ball & Racquet Sports increased 11% to $314 million, or increased 10% on a constant currency basis.
• Selling, general and administrative expenses increased 23% to $698 million; Adjusted selling, general and administrative expenses increased 27% to $677 million.
• Operating profit increased 614% to $44 million; Adjusted operating profit increased 130% to $67 million, including $19 million of government grants received in the second quarter, as compared to the second half of 2024.
• Operating margin increased 430 basis points to 3.5%. Adjusted operating margin increased 260 basis points to 5.5%. Government grants benefited adjusted operating margin by approximately 150 basis points. Adjusted operating margin by segment:Net income/(loss) increased from $(4) million to $18 million, which is $0.03 diluted earnings per share; Adjusted net income increased 46% to $36 million, which is $0.06 adjusted diluted earnings per share.
  • Technical Apparel decreased 10 basis points to 13.9%.
  • Outdoor Performance increased 720 basis points to 5.1%.
  • Ball & Racquet Sports increased 200 basis points to 3.1%.

Balance sheet. Year-over-year inventories increased 29% to $1,597 million. Net debt³ was $640 million, and cash and cash equivalents totaled $303 million at quarter end.

MANAGEMENT CHANGES

Joe Dudy has decided to step down as President & CEO of Wilson effective August 31 to pursue new endeavors outside the Company. He will continue to serve as an advisor to Wilson through March 1, 2026. CFO Andrew Page has been appointed interim President & CEO of Wilson and will lead the Ball & Racquet segment and will continue in his current role as Amer Sports CFO. The company has begun a comprehensive search for the next Wilson leader.

CEO James Zheng said, “We are grateful for Joe Dudy’s 30 years of service at Wilson and wish him well as he begins a new chapter. His contributions have been critical to the brand’s success, especially over the last six years as CEO. Looking forward, I have full confidence in Andrew Page to lead Wilson during this transition while also continuing to execute his responsibilities as Amer Sports CFO.”

OUTLOOK

CFO Andrew Page said, "The inflection of Salomon footwear adds a strong second leg of growth to Arc'teryx's already exceptional sales and margin trajectory, significantly elevating the long-term value creation potential of our portfolio of premium sports and outdoor brands.

"Given our strong first half results and continued operating and financial momentum — and despite higher tariffs than assumed in our previous guidance — we are raising our full year revenue, margin, and EPS expectations. This updated guidance assumes the current 30% incremental U.S. tariff on goods from China plus the current tariff rates on all other countries will stay in place for the remainder of 2025. Although the tariff impact to our Ball & Racquet segment will be slightly higher than expected, given the mitigation strategies already underway across brands, we continue to expect the impact to our consolidated results to be negligible this year."

FULL-YEAR 2025

Amer Sports is updating guidance for the year ending December 31, 2025 (all guidance figures reference adjusted amounts). Guidance assumes incremental U.S. tariffs on imports from China remain at 30%, and the current tariff rates on all other countries:

• Reported revenue growth: 20 – 21%, including an approximate 100 basis point benefit from favorable Fx impact at current exchange rates
• Gross margin: approximately 57.5%
• Operating margin: 11.8 – 12.2%
• Net finance cost: approximately $105 million
• Effective tax rate: 28 – 30%
• Other operating income will be approximately $20 million, and non-controlling interest approximately $10 million
• Fully diluted share count: 561 million
• Fully diluted EPS: $0.77 – 0.82
• D&A: approximately $350 million, including approximately $180 million of ROU depreciation
• CapEx: approximately $300 million
• Technical Apparel:
  • Revenue growth of 22 – 25%
  • Segment operating margin approximately 21%
• Outdoor Performance:
  • Revenue growth of 22 – 25%
  • Segment operating margin 11 – 11.5%
• Ball & Racquet:
  • Revenue growth of 7 – 9%
  • Segment operating margin of 3 – 4%

THIRD QUARTER 2025

Amer Sports is providing the following guidance for the third quarter ending September 30, 2025 (all guidance figures reference adjusted amounts). Guidance assumes incremental U.S. tariffs on imports from China remain at 30%, and the current tariff rates on all other countries:

• Reported revenue growth: approximately 20%, including an approximate 150 basis point benefit from favorable Fx impact at current exchange rates
• Gross margin: approximately 56.5%
• Operating margin: 12.0 – 13.0%
• Net finance cost: $30 – 35 million
• Effective tax rate: 28 – 30%
• Fully diluted share count: 561 million
• Fully diluted EPS: $0.20 – 0.22

Other than with respect to revenue, Amer Sports only provides guidance on a non-IFRS basis. The Company does not provide a reconciliation of forward-looking non-IFRS measures to the most directly comparable IFRS Accounting Standards measures due to the difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations without unreasonable efforts. The Company is unable to address the probable significance of the unavailable reconciling items, which could have a potentially significant impact on its future IFRS financial results. The above outlook reflects the Company’s current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change. Actual results may differ materially from these forward-looking statements, including as a result of, among other things, the factors described under “Forward-Looking Statements” below and in our filings with the SEC.